BCD is the audit firm for the Dunder Mifflin audit. In the course of the audit, BCD has discovered several misstatements that are collectively not considered material. BCD has requested Dunder Mifflin to correct these misstatements, but Dunder Mifflin decided not to follow BCD request and would like to have BCD to issue an audit report with the uncorrected numbers. Which of the following statements is correct concerning this situation?

The Dunder Mifflins statements are free from material misstatement but they will need to add a disclosure in the notes to their financial statements regarding these uncorrected numbers.

The Dunder Mifflins statements are free from material misstatement and they do not need to add a disclosure in the notes to their financial statements regarding these uncorrected numbers.

The Dunder Mifflins statements contain uncorrected misstatements that would cause BCD to issue them a qualified audit opinion.

The Dunder Mifflins statements are not prepared in accordance with GAAP.

BCD should resign from the Dunder Mifflin engagement because Dunder Mifflin is not interested in correcting their misstatements.